Bojangles’, Inc. (Bojangles’) (NASDAQ:BOJA) today announced
financial results for the 13-week second fiscal quarter ended June
26, 2016. Bojangles’ also updated its guidance for the fiscal
year 2016, which is a 52-week period ending on December 25, 2016.
Financial Highlights for Second Fiscal
Quarter 2016
- System-wide comparable restaurant sales increased 0.2% and
company-operated comparable restaurant sales increased 0.9%;
- Total revenues increased 9.2% to $131.6 million from $120.5
million;
- 18 system-wide restaurants were opened – seven company-operated
restaurants and 11 franchised restaurants;
- Net Income increased 58.4% to $10.0 million from $6.3
million;
- Diluted Net Income per Share increased 58.8% to $0.27 from
$0.17;
- Adjusted Net Income* increased 17.3% to $10.1 million from $8.6
million;
- Adjusted Diluted Net Income per Share* increased 17.4% to $0.27
from $0.23; and
- Adjusted EBITDA* increased 12.9% to $23.2 million from $20.5
million.
* Descriptions of Adjusted Net Income, Adjusted
Diluted Net Income per Share, Adjusted EBITDA and other non-GAAP
financial measures are provided in “Use and Definition of Non-GAAP
Measures,” and reconciliations to GAAP figures are provided in the
tables at the end of this release.
“Bojangles’ extended its track record of
system-wide comparable restaurant sales growth to 25 consecutive
quarters with a 0.2% increase during the second fiscal quarter
2016, which on a two- and three-year stacked basis, reflected
growth of 4.6% and 8.8%, respectively. The performance of
company-operated restaurants during the second fiscal quarter 2016
was even stronger, as we experienced a 0.9% increase in comparable
restaurant sales, including 0.5% growth in comparable store
transactions,” said Bojangles’ President and CEO Clifton Rutledge.
“Creating the best experience possible at all
Bojangles’® restaurants goes beyond providing our customers with
freshly-made food that is distinct and affordable; we must also
drive toward operational excellence through strategic investments
in our brand. These include our ‘Kitchen of the Future’ and
ultimately ‘Bojangles’ of the Future’ projects, as well as by
adding labor in the appropriate situations and locations to better
differentiate ourselves in today’s competitive marketplace.
Ramping up our Bo-Size and Star Service efforts by expanding table
service, among other labor initiatives, will ensure our restaurant
hospitality levels match the high quality of our food,” he
continued.
“We are using a measured approach to develop
Bojangles’ in the right way for long-term sustainable growth.
This year we expect to open 60 to 65 system-wide restaurants and
expand our net unit count by approximately 8%. More and more
communities across the southeast from our core North and South
Carolina markets to our growing adjacent states are enjoying the
unique flavors and value of Bojangles’, and we look forward to
reaching more consumers so that they too can enjoy our
one-of-a-kind hospitality and southern-inspired favorites,” he
concluded.
Second Fiscal Quarter 2016 Financial
ReviewSystem-wide comparable restaurant sales increased
0.2%, consisting of company-operated and franchised comparable
restaurant sales of 0.9% and (0.2)%, respectively. Comparable
restaurant sales growth at company-operated restaurants was due to
increases in price and transactions.
Total revenues increased 9.2% to $131.6 million
in the second fiscal quarter of 2016 from $120.5 million in the
prior year fiscal quarter. The increase was primarily due to
a net additional 43 system-wide restaurants at June 26, 2016
compared to June 28, 2015 and comparable restaurant sales growth at
our company-operated restaurants.
Company restaurant revenues increased 9.3% to
$124.7 million in the second fiscal quarter of 2016 from $114.0
million in the prior year fiscal quarter. Franchise royalty
revenues increased 4.0% to $6.6 million in the second fiscal
quarter of 2016 from $6.4 million in the prior year fiscal
quarter.
Restaurant contribution, a non-GAAP measure,
increased 12.3% to $24.5 million in the second fiscal quarter of
2016 from $21.8 million in the prior year fiscal quarter. As
a percentage of company restaurant revenues, restaurant
contribution margin, a non-GAAP measure, increased to 19.7% in the
second fiscal quarter of 2016 from 19.1% in the prior year fiscal
quarter.
General and administrative expenses decreased
19.8% to $9.4 million in the second fiscal quarter of 2016 from
$11.7 million in the prior year fiscal quarter. The decline
was primarily due to amounts incurred in the second fiscal quarter
of 2015 related to public offering expenses, stock-based
compensation for vesting of performance awards and meeting expenses
tied to our bi-annual franchise convention and unit director
leadership conference, partially offset by headcount added to
support a growing restaurant system and additional costs as a
result of operating as a public company.
Net Income increased 58.4% to $10.0 million in
the second fiscal quarter of 2016 compared to $6.3 million in the
prior year fiscal quarter. Diluted Net Income per Share increased
58.8% to $0.27 in the second fiscal quarter of 2016 compared to
$0.17 in the prior year fiscal quarter.
Adjusted EBITDA increased 12.9% to $23.2 million
in the second fiscal quarter of 2016 from $20.5 million in the
prior year fiscal quarter.
Adjusted Net Income increased 17.3% to $10.1
million in the second fiscal quarter of 2016 compared to $8.6
million in the prior year fiscal quarter. Adjusted Diluted
Net Income per Share increased 17.4% to $0.27 in the second fiscal
quarter of 2016 compared to $0.23 in the prior year fiscal
quarter.
Fiscal Year 2016
GuidanceBojangles’ has updated certain parameters of its
annual outlook for the 52-week period ending on December 25,
2016:
- Total revenues of $530.0 million to $533.0 million (previously
$535.0 million to $543.0 million);
- System-wide comparable restaurant sales growth of flat to
low-single digits (previously low single-digits);
- The opening of 60 to 65 system-wide restaurants;
- 28 to 29 company-operated restaurants;
- 32 to 36 franchised restaurants;
- Net increase of 53 to 58 system-wide restaurants;
- 26 to 27 net increase of company-operated restaurants;
- 27 to 31 net increase of franchised restaurants;
- Restaurant contribution margin of 17.7% to 18.1%
- General and administrative expenses of $39.0 million to $39.5
million (previously $40.0 million to $41.5 million);
- Adjusted Diluted Net Income per Share of $0.88 to $0.92
(previously $0.89 to $0.93); and
- Adjusted EBITDA of $83.5 million to $85.5 million (previously
$84.5 million to $86.5 million).
We have not reconciled guidance for Adjusted
Diluted Net Income per Share or Adjusted EBITDA to the
corresponding GAAP financial measures because we do not provide
guidance for the various reconciling items. We are unable to
provide guidance for these reconciling items because we cannot
determine their probable significance, as certain items are outside
of our control and cannot be reasonably predicted due to the fact
that these items could vary significantly from period to period.
Accordingly, reconciliations to the corresponding GAAP financial
measures are not available without unreasonable effort.
Conference Call and Webcast
TodayBojangles’ will host a conference call and webcast to
discuss the second fiscal quarter 2016 results and fiscal year 2016
guidance today at 5:00 p.m. Eastern Daylight Time. The
conference call dial-in number is 1-201-493-6725. A telephone
replay will be available through Thursday, September 8, 2016 and
may be accessed by dialing 1-858-384-5517. The conference ID
is 13640087.
The conference call will also be webcast live
and later archived on the Investors section of our website at
www.bojangles.com.
About Bojangles’,
Inc.Bojangles', Inc. is a highly differentiated and
growing restaurant operator and franchisor dedicated to serving
customers high-quality, craveable food made from our Southern
recipes. Founded in 1977 in Charlotte, N.C., Bojangles'
serves menu items such as delicious, famous chicken,
made-from-scratch buttermilk biscuits, flavorful fixin's and
Legendary Iced Tea®. At June 26, 2016, Bojangles' had 689
system-wide restaurants, of which 295 were company-operated and 394
were franchised restaurants, primarily located in the Southeastern
United States. For more information, visit www.bojangles.com
or follow Bojangles' on Facebook and Twitter.
Use and Definition of Non-GAAP
MeasuresWe utilize certain non-GAAP measures when
assessing the operational strength and the performance of our
business. We believe these non-GAAP measures assist our board
of directors, management and investors in comparing our operating
performance on a consistent basis from period to period by
isolating the effects of some items that vary from period to period
without any correlation to core operating performance or that vary
significantly among similar companies. Bojangles’ cautions that
non-GAAP measures should be considered in addition to, but not as a
substitute for, reported GAAP results.
Comparable restaurant sales reflects the change
in year-over-year sales for the comparable restaurant base (as
applicable, system-wide, franchised or company-operated
restaurants). A restaurant enters our comparable restaurant
base the first full day of the month after being open for 15 months
using a mid-month convention.
Restaurant contribution is defined as company
restaurant revenues less food and supplies costs, restaurant labor
costs and operating costs, as identified by the reconciliation
table below. Restaurant contribution margin is defined as
restaurant contribution as a percentage of company restaurant
revenues. Restaurant contribution and restaurant contribution
margin are supplemental measures of operating performance of our
company-operated restaurants and our calculations thereof may not
be comparable to those reported by other companies.
Restaurant contribution and restaurant contribution margin have
limitations as analytical tools and should not be considered in
isolation or as substitutes for analysis of our results as reported
under GAAP.
Adjusted Net Income represents company net
income before items that we do not consider representative of our
ongoing operating performance, as well as an estimate of recurring
incremental legal, accounting, insurance and other operating and
compliance costs we expect to incur as a public company for those
periods where they had not yet been incurred, both as identified in
the reconciliation table below. Adjusted Diluted Net Income
per Share represents company diluted net income per share before
items that we do not consider representative of our ongoing
operating performance, as well as an estimate of recurring
incremental legal, accounting, insurance and other operating and
compliance costs we expect to incur as a public company for those
periods where they had not yet been incurred, both as identified in
the reconciliation table below.
EBITDA represents company net income before
interest expense (net of interest income), provision for income
taxes and depreciation and amortization. Adjusted EBITDA represents
company net income before interest expense (net of interest
income), provision for income taxes, depreciation and amortization,
items that we do not consider representative of our ongoing
operating performance and certain non-cash items, as identified in
the reconciliation table below.
Adjusted Net Income, Adjusted Diluted Net Income
per Share, EBITDA and Adjusted EBITDA are supplemental measures of
our performance that are neither required by, nor presented in
accordance with, GAAP. Adjusted Net Income, Adjusted Diluted
Net Income per Share, EBITDA and Adjusted EBITDA are not
measurements of our financial performance under GAAP and should not
be considered as alternatives to net income, operating income or
any other performance measures derived in accordance with GAAP or
as alternatives to cash flow from operating activities as a measure
of our liquidity. In addition, in evaluating Adjusted Net
Income, Adjusted Diluted Net Income per Share, EBITDA and Adjusted
EBITDA, you should be aware that in the future we will incur
expenses or charges such as those added back to calculate Adjusted
Net Income, Adjusted Diluted Net Income per Share, EBITDA and
Adjusted EBITDA.
Forward-Looking StatementsThis
release contains forward-looking statements. All statements
other than statements of historical or current facts included in
this release are forward-looking statements. Forward-looking
statements discuss our current expectations, projections and
guidance relating to our financial condition, results of
operations, plans, objectives, future performance and business.
These statements may be preceded by, followed by or include
the words “aim,” “anticipate,” “believe,” “estimate,” “expect,”
“forecast,” “intend,” “outlook,” “plan,” “potential,” “project,”
“projection,” “seek,” “may,” “could,” “would,” “will,” “should,”
“can,” “can have,” “likely,” the negatives thereof and other words
and terms of similar meaning.
Forward-looking statements are inherently
subject to risks, uncertainties and assumptions; they are not
guarantees of performance. Actual results may differ
materially from these expectations due to risks relating to our
vulnerability to changes in consumer preferences and economic
conditions; our ability to open restaurants in new and existing
markets and expand our franchise system; our ability to generate
comparable restaurant sales growth; financial or other difficulties
which could cause our restaurants and our franchisees’ restaurants
to close; our ability to generate increased sales or profits from
new menu items, advertising campaigns, changes in discounting
strategy and restaurant designs and remodels; cancellation or delay
in anticipated future restaurant openings; our reliance on, limited
degree of control over and potential responsibility for, our
franchisees; increases in the cost of chicken, pork, dairy, wheat,
corn and other products; our ability to compete successfully with
other quick-service and fast-casual restaurants; our vulnerability
to conditions in the Southeastern United States; negative
publicity, whether or not valid; concerns about food safety and
quality and about food-borne illnesses, including adverse public
perception due to the occurrence of avian flu, swine flu or other
food-borne illnesses; changes in employment and labor laws; labor
shortages and increases in labor costs; and our dependence upon
frequent and timely deliveries of restaurant food and other
supplies. For further details and discussion of these and
other risks and uncertainties, see our Annual Report on Form 10-K
for the fiscal year ended December 27, 2015 filed with the
Securities and Exchange Commission on March 11, 2016, as updated by
our Quarterly Report on Form 10-Q for the fiscal quarter ended June
26, 2016 filed with the Securities and Exchange Commission on
August 8, 2016. Each of the documents referred to in the preceding
sentence are available at www.sec.gov. You should not place
undue reliance on these statements. We have based these
forward-looking statements on our current expectations and
projections about future events. Although we believe that our
assumptions made in connection with the forward-looking statements
are reasonable, we cannot assure you that the assumptions and
expectations will prove to be correct.
All forward-looking statements are expressly
qualified in their entirety by the foregoing cautionary statements.
In addition, all forward-looking statements speak only as of
the date of this earnings release. We undertake no
obligations to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise other than as required under the federal securities
laws.
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Condensed Consolidated Balance
Sheets |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
June 26,
2016 |
|
|
December 27, 2015 |
|
Current
assets: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
|
17,424 |
|
|
|
14,263 |
|
|
Accounts
and vendor receivables, net |
|
|
5,352 |
|
|
|
4,736 |
|
|
Accounts
receivable, related parties, net |
|
|
433 |
|
|
|
403 |
|
|
Inventories, net |
|
|
3,005 |
|
|
|
3,080 |
|
|
Other
current assets |
|
|
4,026 |
|
|
|
5,639 |
|
|
|
|
|
|
Total
current assets |
|
|
30,240 |
|
|
|
28,121 |
|
|
Property
and equipment, net |
|
|
48,929 |
|
|
|
48,137 |
|
|
Goodwill |
|
|
|
|
161,140 |
|
|
|
161,140 |
|
|
Brand |
|
|
|
|
|
290,500 |
|
|
|
290,500 |
|
|
Franchise
rights, net |
|
|
24,792 |
|
|
|
25,341 |
|
|
Favorable
leases, net |
|
|
1,169 |
|
|
|
1,394 |
|
|
Other
noncurrent assets |
|
|
3,441 |
|
|
|
3,673 |
|
|
|
|
|
|
Total
assets |
$ |
|
560,211 |
|
|
|
558,306 |
|
Liabilities and Stockholders’
Equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Accounts
payable |
$ |
|
13,702 |
|
|
|
17,893 |
|
|
Accrued
expenses |
|
|
23,052 |
|
|
|
19,086 |
|
|
Current
maturities of long-term debt |
|
|
— |
|
|
|
— |
|
|
Current
maturities of capital lease obligations |
|
|
6,157 |
|
|
|
5,968 |
|
|
Other
current liabilities |
|
|
2,557 |
|
|
|
2,155 |
|
|
|
|
|
|
Total
current liabilities |
|
|
45,468 |
|
|
|
45,102 |
|
|
Long-term
debt, less current maturities and deferred debt issuance costs,
net |
|
|
180,434 |
|
|
|
197,735 |
|
|
Deferred
income taxes |
|
|
112,103 |
|
|
|
115,028 |
|
|
Capital
lease obligations, less current maturities |
|
|
21,759 |
|
|
|
21,483 |
|
|
Other
noncurrent liabilities |
|
|
13,341 |
|
|
|
11,834 |
|
|
|
|
|
|
Total
liabilities |
|
|
373,105 |
|
|
|
391,182 |
|
Stockholders’ equity: |
|
|
|
|
|
|
|
Preferred
stock |
|
|
— |
|
|
|
— |
|
|
Common
stock |
|
|
363 |
|
|
|
360 |
|
|
Additional
paid-in capital |
|
|
121,959 |
|
|
|
119,084 |
|
|
Retained
earnings |
|
|
65,536 |
|
|
|
47,661 |
|
|
Accumulated
other comprehensive (loss) income |
|
|
(752 |
) |
|
|
19 |
|
|
|
|
|
|
Total
stockholders’ equity |
|
|
187,106 |
|
|
|
167,124 |
|
|
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
|
560,211 |
|
|
|
558,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Condensed Consolidated Statements of
Operations |
|
(in thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
Twenty-Six Weeks Ended |
|
|
|
|
|
|
|
|
|
June 26,
2016 |
|
June 28,
2015 |
|
|
June 26,
2016 |
|
June 28,
2015 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
restaurant revenues |
$ |
|
124,674 |
|
|
|
114,043 |
|
|
|
|
246,088 |
|
|
|
222,378 |
|
|
|
Franchise
royalty revenues |
|
|
6,621 |
|
|
|
6,368 |
|
|
|
|
12,793 |
|
|
|
12,305 |
|
|
|
Other
franchise revenues |
|
|
300 |
|
|
|
105 |
|
|
|
|
370 |
|
|
|
480 |
|
|
|
|
|
|
|
Total
revenues |
|
|
131,595 |
|
|
|
120,516 |
|
|
|
|
259,251 |
|
|
|
235,163 |
|
|
Company
restaurant operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Food and
supplies costs |
|
|
39,020 |
|
|
|
36,724 |
|
|
|
|
77,541 |
|
|
|
73,285 |
|
|
|
Restaurant
labor costs |
|
|
34,525 |
|
|
|
31,178 |
|
|
|
|
67,861 |
|
|
|
61,647 |
|
|
|
Operating
costs |
|
|
26,607 |
|
|
|
24,312 |
|
|
|
|
55,020 |
|
|
|
48,183 |
|
|
|
Depreciation and amortization |
|
|
3,124 |
|
|
|
2,714 |
|
|
|
|
6,207 |
|
|
|
5,388 |
|
|
|
|
|
|
|
Total
Company restaurant operating expenses |
|
|
103,276 |
|
|
|
94,928 |
|
|
|
|
206,629 |
|
|
|
188,503 |
|
|
|
|
|
|
|
Operating
income before other operating expenses |
|
|
28,319 |
|
|
|
25,588 |
|
|
|
|
52,622 |
|
|
|
46,660 |
|
|
Other
operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
General and
administrative |
|
|
9,402 |
|
|
|
11,717 |
|
|
|
|
18,912 |
|
|
|
22,630 |
|
|
|
Depreciation and amortization |
|
|
716 |
|
|
|
691 |
|
|
|
|
1,433 |
|
|
|
1,350 |
|
|
|
Impairment |
|
|
|
187 |
|
|
|
— |
|
|
|
|
389 |
|
|
|
15 |
|
|
|
Loss (gain)
on disposal of property and equipment |
|
|
10 |
|
|
|
14 |
|
|
|
|
(189 |
) |
|
|
11 |
|
|
|
|
|
|
|
Total other
operating expenses |
|
|
10,315 |
|
|
|
12,422 |
|
|
|
|
20,545 |
|
|
|
24,006 |
|
|
|
|
|
|
|
Operating
income |
|
|
18,004 |
|
|
|
13,166 |
|
|
|
|
32,077 |
|
|
|
22,654 |
|
|
Amortization of deferred debt issuance costs |
|
|
(222 |
) |
|
|
(231 |
) |
|
|
|
(369 |
) |
|
|
(415 |
) |
|
Interest
income |
|
|
|
2 |
|
|
|
5 |
|
|
|
|
3 |
|
|
|
5 |
|
|
Interest
expense |
|
|
(1,937 |
) |
|
|
(2,171 |
) |
|
|
|
(3,962 |
) |
|
|
(4,392 |
) |
|
|
|
|
|
|
Income
before income taxes |
|
|
15,847 |
|
|
|
10,769 |
|
|
|
|
27,749 |
|
|
|
17,852 |
|
|
Income
taxes |
|
|
|
5,816 |
|
|
|
4,435 |
|
|
|
|
9,874 |
|
|
|
8,080 |
|
|
|
|
|
|
|
Net
income |
$ |
|
10,031 |
|
|
|
6,334 |
|
|
|
|
17,875 |
|
|
|
9,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
|
0.28 |
|
|
|
0.31 |
|
|
|
|
0.49 |
|
|
|
0.95 |
|
|
|
|
|
|
|
Diluted |
$ |
|
0.27 |
|
|
|
0.17 |
|
|
|
|
0.48 |
|
|
|
0.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares used in computing net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
36,207 |
|
|
|
20,540 |
|
|
|
|
36,115 |
|
|
|
10,270 |
|
|
|
|
|
|
|
Diluted |
|
|
37,592 |
|
|
|
37,491 |
|
|
|
|
37,517 |
|
|
|
37,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Condensed Consolidated Statements of
Cash Flows |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twenty-Six Weeks Ended |
|
|
|
|
|
|
|
|
|
June 26,
2016 |
|
June 28,
2015 |
|
Cash flows
from operating activities: |
|
|
|
|
|
|
Net
income |
|
$ |
|
17,875 |
|
|
|
9,772 |
|
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Deferred
income tax benefit |
|
|
(775 |
) |
|
|
(2,237 |
) |
|
|
|
|
Depreciation and amortization |
|
|
7,640 |
|
|
|
6,738 |
|
|
|
|
|
Amortization of deferred debt issuance costs |
|
|
369 |
|
|
|
415 |
|
|
|
|
|
Impairment |
|
|
389 |
|
|
|
15 |
|
|
|
|
|
(Gain) loss
on disposal of property and equipment |
|
|
(189 |
) |
|
|
11 |
|
|
|
|
|
(Benefit)
provision for doubtful accounts |
|
|
(138 |
) |
|
|
55 |
|
|
|
|
|
Provision
for inventory spoilage |
|
|
3 |
|
|
|
16 |
|
|
|
|
|
Benefit for
closed stores |
|
|
(51 |
) |
|
|
(50 |
) |
|
|
|
|
Stock-based
compensation |
|
|
549 |
|
|
|
1,402 |
|
|
|
|
|
Excess tax
benefit from stock-based compensation |
|
|
(1,573 |
) |
|
|
(421 |
) |
|
|
|
|
Changes in
operating assets and liabilities |
|
|
1,188 |
|
|
|
2,930 |
|
|
|
|
|
|
|
Net cash
provided by operating activities |
|
|
25,287 |
|
|
|
18,646 |
|
|
Cash flows
from investing activities: |
|
|
|
|
|
|
Purchases
of franchisee's assets |
|
— |
|
|
(186 |
) |
|
|
Purchases
of property and equipment |
|
|
(3,950 |
) |
|
|
(4,671 |
) |
|
|
Proceeds
from disposition of property and equipment |
|
|
49 |
|
|
|
28 |
|
|
|
|
|
|
|
Net cash
used in investing activities |
|
|
(3,901 |
) |
|
|
(4,829 |
) |
|
Cash flows
from financing activities: |
|
|
|
|
|
|
Principal
payments on long-term debt |
|
|
(17,669 |
) |
|
|
(12,551 |
) |
|
|
Stock
option exercises |
|
|
756 |
|
|
|
96 |
|
|
|
Excess tax
benefit from stock-based compensation |
|
|
1,573 |
|
|
|
421 |
|
|
|
Principal
payments on capital lease obligations |
|
|
(2,885 |
) |
|
|
(2,221 |
) |
|
|
|
|
|
|
Net cash
used in financing activities |
|
|
(18,225 |
) |
|
|
(14,255 |
) |
|
|
|
|
|
|
Net
increase (decrease) in cash and cash equivalents |
|
|
3,161 |
|
|
|
(438 |
) |
|
Cash and
cash equivalents balance, beginning of fiscal period |
|
|
14,263 |
|
|
|
13,201 |
|
|
Cash and
cash equivalents balance, end of fiscal period |
$ |
|
17,424 |
|
|
|
12,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Reconciliation of Net Income to
EBITDA and Adjusted EBITDA |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
Twenty-Six Weeks Ended |
|
|
|
|
|
|
|
|
|
June 26,
2016 |
|
June 28,
2015 |
|
|
June 26,
2016 |
|
June 28,
2015 |
|
Net
income |
|
|
$ |
10,031 |
|
6,334 |
|
|
17,875 |
|
9,772 |
|
Income
taxes |
|
|
|
5,816 |
|
4,435 |
|
|
9,874 |
|
8,080 |
|
Interest
expense, net |
|
1,935 |
|
2,166 |
|
|
3,959 |
|
4,387 |
|
Depreciation and amortization (a) |
|
4,062 |
|
3,636 |
|
|
8,009 |
|
7,153 |
|
EBITDA |
|
|
|
|
|
21,844 |
|
16,571 |
|
|
39,717 |
|
29,392 |
|
Non-cash
rent (b) |
|
|
394 |
|
390 |
|
|
771 |
|
779 |
|
Stock-based
compensation (c) |
|
272 |
|
1,063 |
|
|
549 |
|
1,402 |
|
Payroll
taxes associated with stock option exercises (d) |
|
51 |
|
17 |
|
|
71 |
|
17 |
|
Preopening
expenses (e) |
|
379 |
|
438 |
|
|
596 |
|
739 |
|
Sponsor and
board member fees and expenses (f) |
|
— |
|
38 |
|
|
— |
|
166 |
|
Certain
professional, transaction and other costs (g) |
|
9 |
|
2,007 |
|
|
42 |
|
4,880 |
|
Distributor
transition costs (h) |
|
16 |
|
— |
|
|
81 |
|
— |
|
Impairment
and dispositions (i) |
|
237 |
|
25 |
|
|
248 |
|
54 |
|
Adjusted EBITDA |
$ |
23,202 |
|
20,549 |
|
|
42,075 |
|
37,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Includes amortization
of deferred debt issuance costs. |
|
(b) |
Includes deferred
rent, which represents the extent to which our rent expense has
been above or below our cash rent payments, amortization of
favorable (unfavorable) leases and closed store reserves for rent
net of cash payments. We expect to continue to incur similar
expenses in future periods as we record rent expense in accordance
with GAAP, as well as continue to amortize favorable (unfavorable)
leases and record closed store reserves. |
|
(c) |
Represents non-cash,
stock-based compensation. We expect to incur similar expenses in
future periods as we record stock-based compensation related to
existing grants (and any potential future grants) in accordance
with GAAP. |
|
(d) |
Represents payroll
taxes associated with stock option exercises related to stock
options that were outstanding prior to our initial public offering.
We expect to incur similar expenses in future periods when our
directors or employees exercise stock options that were outstanding
prior to our initial public offering. |
|
(e) |
Includes expenses
directly associated with the opening of company-operated
restaurants and incurred prior to the opening of a company-operated
restaurant. We expect to continue to incur similar expenses as we
open company-operated restaurants. |
|
(f) |
Includes reimbursement
of expenses to our sponsor prior to our initial public offering and
compensation and expense reimbursement to members of our board
prior to our initial public offering. |
|
(g) |
Includes costs
associated with third-party consultants for one-time projects,
public offering expenses and certain professional fees and
transaction costs related to financing transactions. We could incur
similar expenses in future periods if we commence additional public
offerings, financing transactions or other one-time projects. |
|
(h) |
Includes expenses
incurred in connection with the transition to our new
distributor. |
|
(i) |
Includes loss (gain)
on disposal of property and equipment, impairment and cash proceeds
on disposals from disposition of property and equipment. We could
continue to record impairment expense in future periods if
performance of company-operated restaurants is not sufficient to
recover the carrying amount of the related long-lived assets. We
expect to incur future losses (gains) and to receive cash proceeds
on disposal of property and equipment associated with retirement,
replacement or write-off of fixed assets. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Reconciliation of Net Income to
Adjusted Net Income |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
Twenty-Six Weeks Ended |
|
|
|
|
|
|
|
|
|
June 26,
2016 |
|
June 28,
2015 |
|
|
June 26,
2016 |
|
June 28,
2015 |
|
Net
income |
|
|
$ |
|
10,031 |
|
|
|
6,334 |
|
|
|
|
17,875 |
|
|
|
9,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain
professional and transaction costs (a) |
|
|
9 |
|
|
|
2,007 |
|
|
|
|
42 |
|
|
|
4,880 |
|
|
Incremental
public company costs (b) |
|
|
— |
|
|
|
(194 |
) |
|
|
|
— |
|
|
|
(794 |
) |
|
Vesting of
performance-based stock options (c) |
|
|
— |
|
|
|
707 |
|
|
|
|
— |
|
|
|
707 |
|
|
Payroll
taxes associated with stock option exercises (d) |
|
|
51 |
|
|
|
17 |
|
|
|
|
71 |
|
|
|
17 |
|
|
Distributor
transition costs (e) |
|
|
16 |
|
|
|
— |
|
|
|
|
81 |
|
|
|
— |
|
|
Tax impact
of adjustments (f) |
|
|
(29 |
) |
|
|
(283 |
) |
|
|
|
(74 |
) |
|
|
(172 |
) |
|
Total adjustments |
|
|
47 |
|
|
|
2,254 |
|
|
|
|
120 |
|
|
|
4,638 |
|
|
Adjusted Net Income |
$ |
|
10,078 |
|
|
|
8,588 |
|
|
|
|
17,995 |
|
|
|
14,410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Reconciliation of Diluted Net Income
Per Share to Adjusted Diluted Net Income Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
Twenty-Six Weeks Ended |
|
|
|
|
|
|
|
|
|
June 26,
2016 |
|
June 28,
2015 |
|
|
June 26,
2016 |
|
June 28,
2015 |
|
Diluted net income per share |
$ |
|
0.27 |
|
|
|
0.17 |
|
|
|
|
0.48 |
|
|
|
0.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain
professional and transaction costs (a) |
|
|
— |
|
|
|
0.06 |
|
|
|
|
— |
|
|
|
0.13 |
|
|
Incremental
public company costs (b) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
|
— |
|
|
|
(0.02 |
) |
|
Vesting of
performance-based stock options (c) |
|
|
— |
|
|
|
0.02 |
|
|
|
|
— |
|
|
|
0.02 |
|
|
Payroll
taxes associated with stock option exercises (d) |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
Distributor
transition costs (e) |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
Tax impact
of adjustments (f) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
|
— |
|
|
|
(0.01 |
) |
|
Total adjustments |
|
|
— |
|
|
|
0.06 |
|
|
|
|
— |
|
|
|
0.12 |
|
|
Adjusted Diluted Net Income per Share |
$ |
|
0.27 |
|
|
|
0.23 |
|
|
|
|
0.48 |
|
|
|
0.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Includes costs
associated with third-party consultants for one-time projects,
public offering expenses and certain professional fees and
transaction costs related to financing transactions. We could incur
similar expenses in future periods if we commence additional public
offerings, financing transactions or other one-time projects. |
|
(b) |
Reflects an estimate
of recurring incremental legal, accounting, insurance and other
operating and compliance costs we expect to incur as a public
company in addition to actual amounts incurred. By its nature, this
adjustment involves risks and uncertainties, and the actual costs
incurred could be different than this adjustment. No adjustments
will be made beyond the second fiscal quarter 2016 since the one
year anniversary of our initial public offering occurred during the
thirteen weeks ended June 26, 2016. |
|
(c) |
Includes non-cash,
stock-based compensation related to the vesting of certain
performance based stock option awards. We could incur similar
expenses in future periods upon the achievement of the performance
metrics indicated in the stock option grants. |
|
(d) |
Represents payroll
taxes associated with stock option exercises related to stock
options that were outstanding prior to our initial public offering.
We expect to incur similar expenses in future periods when our
directors or employees exercise stock options that were outstanding
prior to our initial public offering. |
|
(e) |
Includes expenses
incurred in connection with the transition to our new
distributor. |
|
(f) |
Represents the income
tax (expense) benefit associated with the adjustments in (a)
through (e) that are deductible for income tax purposes. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Reconciliation of Company Restaurant
Revenues to Restaurant Contribution |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
Twenty-Six Weeks Ended |
|
|
|
|
|
|
|
|
|
June 26,
2016 |
|
June 28,
2015 |
|
|
June 26,
2016 |
|
June 28,
2015 |
|
Company
restaurant revenues |
$ |
|
124,674 |
|
|
|
114,043 |
|
|
|
|
246,088 |
|
|
|
222,378 |
|
|
Food and
supplies costs |
|
|
(39,020 |
) |
|
|
(36,724 |
) |
|
|
|
(77,541 |
) |
|
|
(73,285 |
) |
|
Restaurant
labor costs |
|
|
(34,525 |
) |
|
|
(31,178 |
) |
|
|
|
(67,861 |
) |
|
|
(61,647 |
) |
|
Operating
costs |
|
|
(26,607 |
) |
|
|
(24,312 |
) |
|
|
|
(55,020 |
) |
|
|
(48,183 |
) |
|
Restaurant contribution |
$ |
|
24,522 |
|
|
|
21,829 |
|
|
|
|
45,666 |
|
|
|
39,263 |
|
|
Restaurant contribution margin |
|
|
19.7 |
% |
|
|
19.1 |
% |
|
|
|
18.6 |
% |
|
|
17.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For Investor Relations Inquiries:
Raphael Gross of ICR
203.682.8253
For Media Inquiries:
Brian Little of Bojangles’ Restaurants, Inc.
704.519.2118
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