Bojangles’, Inc. (Bojangles’) (NASDAQ:BOJA) today announced
financial results for the 13-week first fiscal quarter ended April
1, 2018. Bojangles’ also reiterated its annual guidance for the
52-week fiscal year 2018 ending on December 30, 2018.
Highlights for the
First Fiscal Quarter
2018 Compared to the
First Fiscal Quarter
2017*
- Total revenues increased 2.7% to $137.5 million from $133.9
million in the prior year fiscal quarter;
- System-wide comparable restaurant sales decreased 0.6%, while
company-operated comparable restaurant sales decreased 1.8% and
franchised comparable restaurant sales increased 0.2%;
- 6 system-wide restaurants were opened, consisting of 1
company-operated restaurant and 5 franchised restaurants, while 8
franchised restaurants were closed;
- Net Income was $4.7 million as compared to $7.5 million in the
prior year fiscal quarter;
- Diluted Net Income per Share was $0.12 as compared to $0.19 in
the prior year fiscal quarter;
- Adjusted Net Income** was $6.7 million as compared to $7.6
million in the prior year fiscal quarter;
- Adjusted Diluted Net Income per Share** was $0.18 as compared
to $0.20 in the prior year fiscal quarter; and
- Adjusted EBITDA** was $16.4 million as compared to $18.9
million in the prior year fiscal quarter.
* Certain amounts for the first fiscal quarter of
2017 have been restated to reflect the adoption of the new revenue
recognition standard. See “Adoption of New Accounting Standard” for
further details. ** Descriptions of Adjusted Net Income, Adjusted
Diluted Net Income per Share, Adjusted EBITDA and other non-GAAP
financial measures are provided in this release under “Use and
Definition of Non-GAAP Measures,” and reconciliations to GAAP
figures are provided in the tables at the end of this release.
“We are pleased our system-wide comparable
restaurant sales trends improved sequentially during the first
fiscal quarter 2018 relative to the fourth fiscal quarter 2017 and
turned slightly positive in our March fiscal period,” said
Bojangles’ Interim President and CEO Randy Kibler. “Going forward,
our key areas of focus will be on well-run restaurants,
communicating and promoting our core menu items, and incorporating
these key signature products into our value messaging. We believe
that these efforts will resonate with our customers,” concluded Mr.
Kibler.
First Fiscal Quarter 2018 Financial
Review
System-wide comparable restaurant sales decreased
0.6%, consisting of a 1.8% decrease in company-operated comparable
restaurant sales and a 0.2% increase in franchised comparable
restaurant sales. The comparable restaurant sales decrease at
company-operated restaurants was composed of a decrease in
transactions, partially offset by increases in price and mix.
Total revenues increased 2.7% to $137.5 million in
the first fiscal quarter of 2018 from $133.9 million in the prior
year fiscal quarter. The increase was primarily due to a net
additional 34 system-wide restaurants at April 1, 2018 compared to
March 26, 2017 and a slight increase in comparable restaurant sales
at our franchised restaurants, partially offset by a comparable
restaurant sales decline at our company-operated restaurants.
Company-operated restaurant revenues increased 1.9%
to $127.2 million in the first fiscal quarter of 2018 from $124.8
million in the prior year fiscal quarter. Franchise royalty
revenues increased 5.4% to $6.9 million in the first fiscal quarter
of 2018 from $6.5 million in the prior year fiscal quarter.
Operating income was $8.9 million in the first
fiscal quarter of 2018 as compared to $13.4 million in the prior
year fiscal quarter.
Company-operated restaurant contribution, a
non-GAAP measure, was $18.2 million in the first fiscal quarter of
2018 as compared to $20.1 million in the prior year fiscal quarter.
As a percentage of company-operated restaurant revenues,
company-operated restaurant contribution margin, a non-GAAP
measure, decreased to 14.3% in the first fiscal quarter of 2018
from 16.1% in the prior year fiscal quarter.
General and administrative expenses were $11.6
million in the first fiscal quarter of 2018 as compared to $9.0
million in the prior year fiscal quarter. The increase was due
primarily to executive separation expenses, stock-based
compensation and headcount added to support an increased number of
restaurants in our system.
Net Income was $4.7 million in the first fiscal
quarter of 2018 as compared to $7.5 million in the prior year
fiscal quarter. Diluted Net Income per Share was to $0.12 in the
first fiscal quarter of 2018 as compared to $0.19 in the prior year
fiscal quarter.
Adjusted Net Income, a non-GAAP measure, was $6.7
million in the first fiscal quarter of 2018 as compared to $7.6
million in the prior year fiscal quarter. Adjusted Diluted Net
Income per Share was $0.18 in the first fiscal quarter of 2018 as
compared to $0.20 in the prior year fiscal quarter.
Adjusted EBITDA, a non-GAAP measure, was $16.4
million in the first fiscal quarter of 2018 as compared to $18.9
million in the prior year fiscal quarter.
Fiscal Year 2018
Guidance
Bojangles’ has reiterated its annual outlook for
the 52-week period ending on December 30, 2018:
- Total revenues of $550.0 million to $560.0 million (including
approximately $11.0 million of franchise marketing and co-op
advertising contribution revenues due to the change in the revenue
recognition rules);
- System-wide comparable restaurant sales of negative low-single
digits to flat;
- The opening of 30 to 40 system-wide restaurants, comprised of 6
to 10 company-operated restaurants and 24 to 30 franchised
restaurants;
- Company-operated restaurant contribution margin of 14.0% to
14.5%;
- General and administrative expenses of $43.0 million to $43.5
million;
- Cash capital expenditures of $11.5 million to $12.5
million;
- Adjusted Diluted Net Income per Share of $0.64 to $0.72;
and
- Adjusted EBITDA of $64.0 million to $68.0 million.
Our guidance does not include the potential impact
of restaurant portfolio optimization, which may include the
refranchising of company-operated restaurants and/or additional
restaurant closures. In addition, 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.
Adoption of New Accounting
Standard
In May 2014, the Financial Accounting Standards
Board issued new guidance for revenue recognition related to
contracts with customers, which supersedes nearly all existing
revenue recognition guidance. We adopted this new guidance in
fiscal year 2018 using the full retrospective transition method,
which resulted in restating each prior reporting period presented
in the year of adoption, including the first fiscal quarter 2017.
The adoption did not have a material impact on Company-operated
restaurant revenues or Franchise royalty revenues. The new guidance
requires Bojangles’ to recognize initial and renewal franchisee
fees on a straight-line basis over the life of the franchise
agreement, which impacts Other franchise revenues. In addition,
funds contributed by franchisees to the advertising funds actively
managed by Bojangles’, as well as the associated advertising fund
expenditures, are reported on a gross basis, and the advertising
fund revenues and expenses may be reported in different periods.
The adoption of the new revenue recognition standard impacted the
Company’s previously reported results as follows (in thousands,
except per share amounts):
|
|
|
|
|
Thirteen Weeks Ended March 26,
2017 |
|
|
As
Reported |
|
Adjustments |
|
As
Adjusted |
|
|
|
|
|
|
|
Franchise
marketing and co-op advertising contribution revenues |
$ |
- |
|
|
2,532 |
|
|
2,532 |
|
Other
franchise revenues |
|
200 |
|
|
(140 |
) |
|
60 |
|
Franchise
marketing and co-op advertising costs |
|
- |
|
|
2,532 |
|
|
2,532 |
|
Income tax
benefit (expense) |
|
(4,169 |
) |
|
53 |
|
|
(4,116 |
) |
Net
income |
|
7,617 |
|
|
(87 |
) |
|
7,530 |
|
Net income
per diluted share |
|
0.20 |
|
|
(0.01 |
) |
|
0.19 |
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017 |
|
As
Reported |
|
Adjustments |
|
As
Adjusted |
|
|
|
|
|
|
|
Other
current liabilities |
$ |
651 |
|
283 |
|
|
934 |
Deferred
income taxes |
|
71,190 |
|
(980 |
) |
|
70,210 |
Other
noncurrent liabilities |
|
13,458 |
|
3,774 |
|
|
17,232 |
Retained
earnings |
|
157,383 |
|
(3,077 |
) |
|
154,306 |
|
|
|
|
|
|
|
|
Conference Call and Webcast Today
Bojangles’ will host a conference call and webcast
to discuss the first fiscal quarter 2018 results, as well as fiscal
year 2018 guidance today at 5:00 p.m. Eastern Time. The conference
call dial-in number is 201-493-6725. A telephone replay will be
available through Friday, June 8, 2018 and may be accessed by
dialing 412-317-6671. The conference ID is 13678529.
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, including breakfast served All Day, Every Day. Founded in
1977 in Charlotte, N.C., Bojangles’® serves menu items such as
made-from-scratch biscuit breakfast sandwiches, delicious
hand-breaded bone-in chicken, flavorful fixin’s (sides) and
Legendary Iced Tea®. At April 1, 2018, Bojangles’ had 762
system-wide restaurants, of which 326 were company-operated and 436
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
Measures
We 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 certain 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.
Company-operated restaurant contribution represents
our operating income excluding the impact of franchise royalty
revenues, franchise marketing and co-op advertising fund
contribution revenues and associated costs, properties and
equipment rental revenues, other franchise revenues, general and
administrative expenses, costs associated with properties and
equipment rentals, depreciation and amortization, impairment and
(gain) loss on disposal of property and equipment and other, as
identified by the reconciliation table below. Company-operated
restaurant contribution margin is defined as company-operated
restaurant contribution as a percentage of company-operated
restaurant revenues. Company-operated restaurant contribution and
company-operated 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. Company-operated restaurant
contribution and company-operated 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. Included with the reconciliations to GAAP
figures provided in the tables at the end of this release is a
reconciliation of our operating income to our company-operated
restaurant contribution.
Adjusted Net Income represents company net income
before items that we do not consider representative of our ongoing
operating performance 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 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. Adjusted Net Income, Adjusted Diluted Net Income per
Share, EBITDA and Adjusted EBITDA have limitations as analytical
tools, and should not be considered in isolation, or as substitutes
for analysis of our results as reported under GAAP. 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 Statements
This 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, among other risks, 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, technology initiatives
or restaurant designs and remodels; cancellation of 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, such as salmonella, E. coli, or others;
changes in employment and labor laws; labor shortages and increases
in labor costs; the impact of litigation, including wage and hour
class action lawsuits; 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 31, 2017, which was filed with the SEC on March 8, 2018,
and which is 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 obligation 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 |
|
April 1,
2018 |
|
December 31,
2017 (a) |
Current
assets: |
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
19,384 |
|
|
14,052 |
|
|
Accounts
and vendor receivables, net |
|
4,607 |
|
|
5,863 |
|
|
Accounts
receivable, related parties, net |
|
571 |
|
|
553 |
|
|
Inventories, net |
|
3,389 |
|
|
3,619 |
|
|
Other
current assets |
|
1,958 |
|
|
2,408 |
|
|
|
|
|
|
Total
current assets |
|
29,909 |
|
|
26,495 |
|
|
Property
and equipment, net |
|
50,107 |
|
|
49,423 |
|
|
Goodwill |
|
|
|
161,140 |
|
|
161,140 |
|
|
Brand |
|
|
|
|
290,500 |
|
|
290,500 |
|
|
Franchise
rights, net |
|
22,872 |
|
|
23,146 |
|
|
Favorable
leases, net |
|
619 |
|
|
688 |
|
|
Other
noncurrent assets |
|
4,285 |
|
|
4,076 |
|
|
|
|
|
|
Total
assets |
$ |
559,432 |
|
|
555,468 |
|
Liabilities and Stockholders’
Equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts
payable |
$ |
11,903 |
|
|
12,956 |
|
|
Accrued
expenses |
|
21,391 |
|
|
17,797 |
|
|
Current
maturities of capital lease obligations |
|
8,532 |
|
|
8,502 |
|
|
Other
current liabilities |
|
4,391 |
|
|
934 |
|
|
|
|
|
|
Total
current liabilities |
|
46,217 |
|
|
40,189 |
|
|
Long-term
debt, less current maturities and deferred debt issuance costs,
net |
|
119,492 |
|
|
123,376 |
|
|
Deferred
income taxes |
|
69,981 |
|
|
70,210 |
|
|
Capital
lease obligations, less current maturities |
|
21,270 |
|
|
22,434 |
|
|
Other
noncurrent liabilities |
|
17,515 |
|
|
17,232 |
|
|
|
|
|
|
Total
liabilities |
|
274,475 |
|
|
273,441 |
|
Stockholders’ equity: |
|
|
|
|
|
Preferred
stock |
|
— |
|
|
— |
|
|
Common
stock |
|
370 |
|
|
370 |
|
|
Treasury
stock |
|
(4,859 |
) |
|
(2,000 |
) |
|
Additional
paid-in capital |
|
129,869 |
|
|
128,895 |
|
|
Retained
earnings |
|
158,902 |
|
|
154,306 |
|
|
Accumulated
other comprehensive income |
|
675 |
|
|
456 |
|
|
|
|
|
|
Total
stockholders’ equity |
|
284,957 |
|
|
282,027 |
|
|
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
559,432 |
|
|
555,468 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Adjusted to reflect the retrospective adoption of Accounting
Standards No. 2014-09, Revenue from Contracts with Customers. |
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
Unaudited Condensed Consolidated Statements of
Operations |
(in thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
|
|
|
|
|
|
April
1, 2018 |
|
March 26,
2017 (a) |
Revenues: |
|
|
|
|
|
|
|
|
Company-operated restaurant revenues |
$ |
127,153 |
|
|
124,783 |
|
|
Franchise
royalty revenues |
|
6,865 |
|
|
6,513 |
|
|
Franchise
marketing and co-op advertising contribution revenues |
|
2,663 |
|
|
2,532 |
|
|
Properties
and equipment rental revenues |
|
539 |
|
|
— |
|
|
Other
franchise revenues |
|
272 |
|
|
60 |
|
|
|
|
|
|
Total
revenues |
|
137,492 |
|
|
133,888 |
|
Restaurant
operating expenses: |
|
|
|
|
|
Company-operated restaurant food and supplies costs |
|
39,986 |
|
|
38,684 |
|
|
Company-operated restaurant labor costs |
|
37,465 |
|
|
36,347 |
|
|
Company-operated restaurant operating costs |
|
31,539 |
|
|
29,691 |
|
|
Company-operated restaurant depreciation and amortization |
|
3,465 |
|
|
3,208 |
|
|
Franchise
marketing and co-op advertising costs |
|
2,663 |
|
|
2,532 |
|
|
Costs
associated with properties and equipment rentals |
|
421 |
|
|
— |
|
|
|
|
|
|
Total
restaurant operating expenses |
|
115,539 |
|
|
110,462 |
|
|
|
|
|
|
Operating
income before other operating expenses |
|
21,953 |
|
|
23,426 |
|
Other
operating expenses: |
|
|
|
|
|
General and
administrative |
|
11,557 |
|
|
8,953 |
|
|
Depreciation and amortization |
|
665 |
|
|
725 |
|
|
Impairment |
|
|
853 |
|
|
296 |
|
|
(Gain) loss
on disposal of property and equipment and other |
|
(27 |
) |
|
22 |
|
|
|
|
|
|
Total other
operating expenses |
|
13,048 |
|
|
9,996 |
|
|
|
|
|
|
Operating
income |
|
8,905 |
|
|
13,430 |
|
Amortization of deferred debt issuance costs |
|
(116 |
) |
|
(118 |
) |
Interest
income |
|
|
1 |
|
|
1 |
|
Interest
expense |
|
|
(1,648 |
) |
|
(1,667 |
) |
|
|
|
|
|
Income
before income taxes |
|
7,142 |
|
|
11,646 |
|
Income tax
expense |
|
(2,448 |
) |
|
(4,116 |
) |
|
|
|
|
|
Net
income |
$ |
4,694 |
|
|
7,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.13 |
|
|
0.21 |
|
|
|
|
|
|
Diluted |
$ |
0.12 |
|
|
0.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares used in computing net income per share: |
|
|
|
|
|
|
|
|
|
Basic |
|
36,736 |
|
|
36,568 |
|
|
|
|
|
|
Diluted |
|
38,127 |
|
|
38,637 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Adjusted to reflect the retrospective adoption of Accounting
Standards No. 2014-09, Revenue from Contracts with Customers. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Condensed Consolidated Statements of
Cash Flows |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
|
|
|
|
|
|
April 1,
2018 |
|
March 26,
2017 (a) |
|
Cash flows
from operating activities: |
|
|
|
|
|
|
Net
income |
$ |
4,694 |
|
|
7,530 |
|
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Deferred
income tax benefit |
|
(267 |
) |
|
(236 |
) |
|
|
|
|
Depreciation and amortization |
|
4,130 |
|
|
3,933 |
|
|
|
|
|
Amortization of deferred debt issuance costs |
|
116 |
|
|
118 |
|
|
|
|
|
Impairment |
|
853 |
|
|
296 |
|
|
|
|
|
(Gain) loss
on disposal of property and equipment and other |
|
(27 |
) |
|
22 |
|
|
|
|
|
Provision
for doubtful accounts |
|
172 |
|
|
153 |
|
|
|
|
|
Benefit for
inventory spoilage |
|
(12 |
) |
|
(3 |
) |
|
|
|
|
Stock-based
compensation |
|
1,016 |
|
|
374 |
|
|
|
|
|
Changes in
operating assets and liabilities |
|
5,420 |
|
|
2,049 |
|
|
|
|
|
|
|
Net cash provided by
operating activities |
|
16,095 |
|
|
14,236 |
|
|
Cash flows
from investing activities: |
|
|
|
|
|
|
Purchases
of property and equipment |
|
(1,815 |
) |
|
(3,015 |
) |
|
|
Proceeds
from disposition of property and equipment |
|
— |
|
|
14 |
|
|
|
|
|
|
|
Net cash used in
investing activities |
|
(1,815 |
) |
|
(3,001 |
) |
|
Cash flows
from financing activities: |
|
|
|
|
|
|
Principal
payments on long-term debt |
|
(4,000 |
) |
|
(2,132 |
) |
|
|
Stock
option exercises |
|
10 |
|
|
162 |
|
|
|
Vesting of
restricted stock units |
|
(52 |
) |
|
— |
|
|
|
Purchases
of treasury stock |
|
(2,859 |
) |
|
— |
|
|
|
Principal
payments on capital lease obligations |
|
(2,047 |
) |
|
(1,750 |
) |
|
|
|
|
|
|
Net cash used in
financing activities |
|
(8,948 |
) |
|
(3,720 |
) |
|
|
|
|
|
|
Net increase in cash
and cash equivalents |
|
5,332 |
|
|
7,515 |
|
|
Cash and
cash equivalents balance, beginning of fiscal period |
|
14,052 |
|
|
13,898 |
|
|
Cash and
cash equivalents balance, end of fiscal period |
$ |
19,384 |
|
|
21,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Adjusted to reflect the retrospective adoption of Accounting
Standards No. 2014-09, Revenue from Contracts with Customers. |
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Reconciliation of Net Income to
Adjusted Net Income |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
|
|
|
|
|
|
|
|
April 1,
2018 |
|
March 26,
2017 (a) |
|
|
Net
income |
|
|
$ |
4,694 |
|
|
7,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain
professional, transaction and other costs (b) |
|
— |
|
|
3 |
|
|
|
Payroll
taxes associated with stock option exercises (c) |
|
5 |
|
|
26 |
|
|
|
Executive
separation expenses (d) |
|
1,034 |
|
|
5 |
|
|
|
Modification of equity awards in connection with executive
separation (e) |
|
551 |
|
|
— |
|
|
|
Adjustments
to deferred tax assets associated with executive compensation
(f) |
|
802 |
|
|
— |
|
|
|
Tax impact
of adjustments (g) |
|
(387 |
) |
|
(11 |
) |
|
|
Total adjustments |
|
2,005 |
|
|
23 |
|
|
|
Adjusted Net Income |
$ |
6,699 |
|
|
7,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
|
Unaudited Reconciliation of Diluted Net Income
Per Share to Adjusted Diluted Net Income Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
|
|
|
|
|
|
|
|
April 1,
2018 |
|
March 26,
2017 (a) |
|
|
Diluted net income per share |
$ |
0.12 |
|
|
0.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain
professional, transaction and other costs (b) |
|
— |
|
|
— |
|
|
|
Payroll
taxes associated with stock option exercises (c) |
|
— |
|
|
0.01 |
|
|
|
Executive
separation expenses (d) |
|
0.03 |
|
|
— |
|
|
|
Modification of equity awards in connection with executive
separation (e) |
|
0.02 |
|
|
— |
|
|
|
Adjustments
to deferred tax assets associated with executive compensation
(f) |
|
0.02 |
|
|
— |
|
|
|
Tax impact
of adjustments (g) |
|
(0.01 |
) |
|
— |
|
|
|
Total adjustments |
|
0.06 |
|
|
0.01 |
|
|
|
Adjusted Diluted Net Income per Share |
$ |
0.18 |
|
|
0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Adjusted to reflect the retrospective adoption of Accounting
Standards No. 2014-09, Revenue from Contracts with Customers. |
|
(b) |
Includes public offering expenses. We could incur similar
expenses in future periods if we commence additional public
offerings, financing transactions or other one-time projects. |
|
(c) |
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 stock options that were outstanding prior to
our initial public offering are exercised. |
|
(d) |
Represents severance and legal fees associated with former
executives departing the Company. |
|
(e) |
Represents net non-cash, stock-based compensation recorded in
connection with the modification of certain equity awards
associated with a former executive departing the Company. |
|
(f) |
In connection with a former executive departing the Company
and the associated modification of equity awards, certain
compensation costs related to the executive are no longer expected
to be deductible for income tax purposes. Accordingly, we recorded
adjustments to previously recorded deferred tax assets. We could
record similar adjustments in future periods if any of the
compensation costs are ultimately deductible for income tax
purposes. |
|
(g) |
Represents the income tax expense associated with the
adjustments in (b) through (f) that are deductible for income tax
purposes. |
|
|
|
|
|
|
|
BOJANGLES’, INC. AND
SUBSIDIARIES |
Unaudited Reconciliation of Net Income to
EBITDA and Adjusted EBITDA |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
|
|
|
|
|
|
April 1,
2018 |
|
March 26,
2017 (a) |
Net
income |
|
|
$ |
4,694 |
|
7,530 |
Income
taxes |
|
|
|
2,448 |
|
4,116 |
Interest
expense, net |
|
1,647 |
|
1,666 |
Depreciation and amortization (b) |
|
4,246 |
|
4,051 |
EBITDA |
|
|
|
|
|
13,035 |
|
17,363 |
Non-cash
rent (c) |
|
|
334 |
|
404 |
Stock-based
compensation (d) |
|
1,016 |
|
374 |
Payroll
taxes associated with stock option exercises (e) |
|
5 |
|
26 |
Preopening
expenses (f) |
|
101 |
|
375 |
Certain
professional, transaction and other costs (g) |
|
— |
|
3 |
Executive
separation expenses (h) |
|
1,034 |
|
5 |
Impairment
and dispositions (i) |
|
826 |
|
332 |
Adjusted EBITDA |
$ |
16,351 |
|
18,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Adjusted to reflect the retrospective adoption of Accounting
Standards No. 2014-09, Revenue from Contracts with Customers. |
(b) |
Includes amortization of deferred debt issuance costs. |
(c) |
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. |
(d) |
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. |
(e) |
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 stock options that were outstanding prior to
our initial public offering are exercised. |
(f) |
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. |
(g) |
Includes public offering expenses. We could incur similar
expenses in future periods if we commence additional public
offerings, financing transactions or other one-time projects. |
(h) |
Represents severance and legal fees associated with former
executives departing the Company. |
(i) |
Includes (gain) loss on disposal of property and equipment and
other, 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 may incur future (gains) losses and
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 Operating Income
to Company-Operated Restaurant Contribution |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
|
|
|
|
|
|
|
|
|
April 1,
2018 |
|
March 26,
2017 (a) |
|
|
Operating
income |
|
$ |
8,905 |
|
|
13,430 |
|
|
|
Less: |
|
Franchise
royalty revenues |
|
(6,865 |
) |
|
(6,513 |
) |
|
|
|
|
|
Franchise
marketing and co-op advertising contribution revenues |
|
(2,663 |
) |
|
(2,532 |
) |
|
|
|
|
|
Properties
and equipment rental revenues |
|
(539 |
) |
|
- |
|
|
|
|
|
|
Other
franchise revenues |
|
(272 |
) |
|
(60 |
) |
|
|
Plus: |
|
General and
administrative |
|
11,557 |
|
|
8,953 |
|
|
|
|
|
|
Franchise
marketing and co-op advertising costs |
|
2,663 |
|
|
2,532 |
|
|
|
|
|
|
Costs
associated with properties and equipment rentals |
|
421 |
|
|
- |
|
|
|
|
|
|
Depreciation and amortization |
|
4,130 |
|
|
3,933 |
|
|
|
|
|
|
Impairment |
|
853 |
|
|
296 |
|
|
|
|
|
|
(Gain) loss
on disposal of property and equipment and other |
|
(27 |
) |
|
22 |
|
|
|
Company-operated restaurant contribution |
$ |
18,163 |
|
|
20,061 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated restaurant revenues |
$ |
127,153 |
|
|
124,783 |
|
|
|
Company-operated restaurant contribution
margin |
|
14.3 |
% |
|
16.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Adjusted to reflect the retrospective adoption of Accounting
Standards No. 2014-09, Revenue from Contracts with Customers. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For Investor Relations Inquiries:Raphael Gross of
ICR203.682.8253
For Media Inquiries:Brian Little of Bojangles’
Restaurants, Inc.704.519.2118
BOJANGLES', INC. (NASDAQ:BOJA)
Historical Stock Chart
From Jun 2024 to Jul 2024
BOJANGLES', INC. (NASDAQ:BOJA)
Historical Stock Chart
From Jul 2023 to Jul 2024