Bravo Brio Restaurant Group, Inc. (Nasdaq:BBRG) (the Company) owner
and operator of the BRAVO! Cucina Italiana (BRAVO!) and BRIO Tuscan
Grille (BRIO) restaurant concepts, today reported financial results
for the thirteen week period ended March 29, 2015. The Company also
raised its outlook for the full year 2015.
Selected First Quarter 2015 Highlights Compared to the
First Quarter 2014:
- Revenues increased 5.4% to $108.2 million from $102.6
million.
- Total comparable restaurant sales decreased 1.2%.
- Comparable restaurant sales decreased 1.7% at BRAVO! and 1.0%
at BRIO.
- Restaurant-level operating profit increased 3.0% to $15.8
million from $15.3 million.
- Net income was $2.5 million, or $0.16 per diluted share,
compared to net income of $2.9 million, or $0.14 per diluted
share.
Saed Mohseni, Chief Executive Officer, said, "Our better than
expected results during the first quarter have enabled us to
modestly increase our revenues and earnings expectations for the
full year. Our results were driven by a higher average check at
BRIO and better than expected performance from our new restaurants.
We attribute the increase in average check at BRIO to our newly
designed menu, the use of daily feature cards which showcase the
culinary talents of our Executive Chefs, and the growing usage of
our on-line reservation system. As these and other brand
initiatives gain traction, we are cautiously optimistic that we'll
achieve our financial objectives."
Mohseni continued, "We are pleased with the initial results of
the six new restaurants which comprise the 2014 development class
and their positive contributions to our total average weekly sales.
We are similarly encouraged by the early guest reception at our
first quarter BRAVO! openings in Huntsville, Alabama and
Cincinnati, Ohio. We just opened a BRIO in Fairfax, Virginia and
look forward to upcoming openings in Las Vegas, Nevada and Miami,
Florida. Additionally, we are nearing completion of a new
franchise agreement with an experienced operator in Puerto Rico and
expect a BRIO to open in San Juan under this agreement later this
year."
First Quarter 2015 Financial Results
Revenues increased $5.6 million, or 5.4%, to $108.2 million in
the first quarter of 2015, from $102.6 million in the first quarter
of 2014. The increase in revenues was primarily due to an
additional 60 operating weeks that was partially offset by a 1.2%
decrease in comparable restaurant sales. The comparable
restaurant sales decrease consisted of a 3.2% decrease in guest
counts partially offset by a 2.0% increase in average
check.
Total restaurant operating costs, which include costs of sales,
labor costs, operating costs and occupancy costs, increased $5.1
million, or 5.8%, to $92.4 million in the first quarter of 2015,
from $87.3 million in the first quarter of 2014. Total
restaurant-level operating profit increased $0.5 million, or 3.0%,
to $15.8 million from $15.3 million in the same period last
year. As a percentage of revenues, total restaurant-level
operating profit decreased to 14.6% in the first quarter of 2015
from 15.0% in the first quarter of 2014.
Net income in the first quarter of 2015 was $2.5 million, or
$0.16 per diluted share, compared to net income of $2.9 million, or
$0.14 per diluted share, in the same period last year.
First Quarter 2015 Brand Operating
Highlights
Comparable restaurant sales decreased 1.7% at BRAVO! and 1.0% at
BRIO. Average weekly sales for BRAVO! and BRIO were $61,100
and $85,200, respectively.
During the first quarter of 2015, the Company opened BRAVO!
restaurants in Huntsville, Alabama and Cincinnati, Ohio. As of
March 29, 2015, the Company operated 51 BRAVO! restaurants, 61
BRIO restaurants, and one Bon Vie restaurant across 33
states. Included in this total is one BRIO restaurant that is
operated under a management agreement.
2015 Outlook
The Company is raising its outlook for the 52-week period ending
December 27, 2015 as follows:
- Revenues of $421 million to $429 million (previously $420
million to $428 million).
- Total comparable restaurant sales of minus 2.5% to 0.0%.
- Development of five Company-operated restaurants.
- Pre-opening costs of approximately $3.5 million.
- Diluted earnings per share of $0.63 to $0.69 (previously $0.62
to $0.68).
- Capital expenditures of $16 million to $18 million.
- Diluted share count of approximately 16.0 million.
- Estimated annual tax rate of approximately 22% to 24%
(previously 23% to 25%).
Investor Conference Call and Webcast
The Company will host an investor conference call to discuss
first quarter 2015 financial results today at 4:30 PM
ET. Hosting the call will be Saed Mohseni, Chief Executive
Officer; Jim O'Connor, Chief Financial Officer; and Brian O'Malley,
President and Chief Operating Officer.
The conference call can be accessed live over the phone by
dialing (888) 554-1417, or for international callers (719)
325-2492. A replay will be available one hour after the call and
can be accessed by dialing (877) 870-5176 or (858) 384-5517 for
international callers; the conference ID is 7268012. The
replay will be available until Monday, May 11, 2015.
The call will also be webcast live and later archived on the
Company's investor relations website at http://investors.bbrg.com
in the 'Presentations and Events' section.
About Bravo Brio Restaurant Group, Inc.
Bravo Brio Restaurant Group, Inc. is a leading owner and
operator of two distinct Italian restaurant brands, BRAVO! Cucina
Italiana and BRIO Tuscan Grille. BBRG has positioned its brands as
multifaceted culinary destinations that deliver the ambiance,
design elements and food quality reminiscent of fine dining
restaurants at a value typically offered by casual dining
establishments, a combination known as the upscale affordable
dining segment. Each of BBRG's brands provides its guests with a
fine dining experience and value by serving affordable cuisine
prepared using fresh flavorful ingredients and authentic Italian
cooking methods, combined with attentive service in an attractive,
lively atmosphere. BBRG strives to be the best Italian restaurant
company in America and is focused on providing its guests an
excellent dining experience through consistency of execution.
Forward-Looking Statements
Some of the statements in this release contain forward-looking
statements, which involve risks and uncertainties. These
statements relate to future events or Bravo Brio Restaurant Group,
Inc.'s future financial performance. The Company has attempted
to identify forward-looking statements by terminology including
"anticipates," "believes," "can," "continue," "could," "estimates,"
"expects," "intends," "may," "plans," "potential," "predicts,"
"should" or "will" or the negative of these terms or other
comparable terminology. These statements are only predictions and
involve known and unknown risks, uncertainties, and other factors,
including those discussed under the heading "Risk Factors" in
the Annual Report on Form 10-K filed by the Company with the
Securities and Exchange Commission on March 6, 2015.
Although Bravo Brio Restaurant Group, Inc. believes that the
expectations reflected in the forward-looking statements are
reasonable based on its current knowledge of the business and
operations, it cannot guarantee future results, levels of activity,
performance or achievements. The Company assumes no obligation
to provide revisions to any forward-looking statements should
circumstances change.
BRAVO BRIO RESTAURANT
GROUP, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS
OF OPERATIONS |
FOR THE THIRTEEN WEEKS
ENDED MARCH 29, 2015 AND MARCH 30, 2014 |
(in thousands except per
share data) |
|
|
|
|
|
|
Thirteen Weeks |
Thirteen Weeks |
|
Ended |
Ended |
|
|
|
|
March 29,
2015 |
March 30,
2014 |
|
(Unaudited) |
(Unaudited) |
Revenues |
$ 108,169 |
|
$ 102,648 |
|
Costs and expenses |
|
|
|
|
Cost of sales |
27,906 |
25.8% |
26,510 |
25.8% |
Labor |
38,850 |
35.9% |
36,564 |
35.6% |
Operating |
17,522 |
16.2% |
16,813 |
16.4% |
Occupancy |
8,082 |
7.5% |
7,414 |
7.2% |
General and administrative
expenses |
5,782 |
5.3% |
5,738 |
5.6% |
Restaurant preopening
costs |
937 |
0.9% |
348 |
0.3% |
Depreciation and
amortization |
5,438 |
5.0% |
5,010 |
4.9% |
Total costs and
expenses |
104,517 |
96.6% |
98,397 |
95.9% |
Income from operations |
3,652 |
3.4% |
4,251 |
4.1% |
Interest expense, net |
405 |
0.4% |
256 |
0.2% |
Income before income taxes |
3,247 |
3.0% |
3,995 |
3.9% |
Income tax expense |
714 |
0.7% |
1,118 |
1.1% |
Net income |
$ 2,533 |
2.3% |
$ 2,877 |
2.8% |
|
|
|
|
|
Net income per basic share |
$ 0.17 |
|
$ 0.15 |
|
Net income per diluted share |
$ 0.16 |
|
$ 0.14 |
|
Weighted average shares
outstanding-basic |
15,122 |
|
19,314 |
|
Weighted average shares
outstanding-diluted |
15,870 |
|
20,165 |
|
|
|
|
|
|
Certain percentage amounts may
not sum due to rounding. |
|
|
BRAVO BRIO RESTAURANT
GROUP, INC. AND SUBSIDIARIES |
CONSOLIDATED BALANCE
SHEETS |
AS OF MARCH 29, 2015
AND DECEMBER 28, 2014 |
(Dollars in
thousands) |
|
|
|
|
March 29, |
December 28, |
|
2015 |
2014 |
|
(Unaudited) |
|
Assets |
|
|
Current assets |
|
|
Cash and cash equivalents |
$ 357 |
$ 427 |
Accounts receivable |
6,734 |
7,079 |
Tenant improvement allowance
receivable |
1,009 |
1,613 |
Inventories |
2,810 |
3,132 |
Deferred income taxes, net |
3,180 |
3,459 |
Prepaid expenses and other
current assets |
1,814 |
2,179 |
Total current
assets |
15,904 |
17,889 |
Property and equipment — net |
181,360 |
178,877 |
Deferred income taxes — net |
50,708 |
50,872 |
Other assets — net |
4,096 |
4,125 |
Total assets |
$ 252,068 |
$ 251,763 |
|
|
|
Liabilities and stockholders' equity |
|
|
Current liabilities |
|
|
Trade and construction payables |
$ 15,600 |
$ 13,238 |
Accrued expenses |
22,592 |
25,975 |
Current portion of long-term
debt |
— |
— |
Deferred lease incentives |
7,787 |
7,694 |
Deferred gift card revenue |
10,278 |
12,783 |
Total current liabilities |
56,257 |
59,690 |
Deferred lease incentives |
59,474 |
59,475 |
Long-term debt |
57,100 |
56,000 |
Other long-term liabilities |
23,001 |
22,814 |
Commitments and contingencies |
|
|
Stockholders' equity |
|
|
Common shares, no par value per
share— authorized 100,000,000 shares; 20,270,065 shares issued at
March 29, 2015 and 20,177,174 shares issued at December 28,
2014 |
199,637 |
199,718 |
Preferred shares, no par value
per share— authorized 5,000,000 shares; issued and outstanding, 0
shares at March 29, 2015 and December 28, 2014 |
— |
— |
Treasury shares, 5,083,281
shares at March 29, 2015 and December 28, 2014 |
(72,997) |
(72,997) |
Retained deficit |
(70,404) |
(72,937) |
Total
stockholders' equity |
56,236 |
53,784 |
Total liabilities and stockholders'
equity |
$ 252,068 |
$ 251,763 |
|
|
|
CONTACT: Investor Relations
Don Duffy / Raphael Gross
(203) 682-8200
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